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The SA Daily 06 September 2019

For SA jobs, capital crucial

  • Capital stock accumulation in SA is crucial for economic development; productivity; and employment creation. SA’s real capital stock growth peaked at 4.1% y/y in 2008, one year before the economic contraction of 1.5% in 2009. It hit a low of 1.7% y/y in 2018.
  • In US dollar per capita terms, SA’s real capital stock averaged just 13,417 over 2010-2018, down from 16,501 over 2000-2007.
  • To create jobs, and reduce both inequality and poverty, SA should look urgently to accumulate capital stock across all sectors, specifically in the highly labour-intensive sectors, and accompanied by a much higher quality of education.
  • Public schools really should be aspiring to the standards of private schools, thereby enabling the SA youth to compete here and abroad. As SA’s longstanding entrenched dual problem of labour oversupply and poor economic growth has fuelled unemployment, particularly among the youth, capital accumulation and quality education clearly would address both issues.

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